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June 07, 2022

Meeting of the International Grains Council

Members of the International Grains Council (IGC) convened for the 56th IGC Council Session on 6th June 2022. The meeting was chaired by Mr Taras Kachka, Deputy Minister for Development of Economy, Trade and Agriculture of Ukraine, Trade Representative of Ukraine. 

Reflecting smaller wheat, maize and sorghum harvests, total grains production was projected to fall by 40m t y/y, to 2,251m, in 2022/23. With consumption seen only fractionally lower compared to the year before, global end-season inventories were predicted to contract, including a reduction in the major exporters. Reflecting an anticipated drop in maize and barley volumes, world trade was projected to decline by three percent y/y, to 404m t. 

On the basis of bumper outturns in leading producers, global soyabean output in 2022/23 was seen rebounding solidly, to a peak of 387m t, up 11 percent y/y, with uptake and inventories predicted to rise. Traded volumes were projected to recover, increasing by eight percent y/y on larger deliveries to Asian markets in particular. 

Tied to gains in Asia, world rice output in 2022/23 was seen expanding by one percent y/y, to a fresh high. With increases in exporters compensating for falls elsewhere, stocks were predicted broadly steady y/y. Trade in 2023 was seen near-unchanged, at 51m t, with heavy buying by Africa and China likely to feature.

World pulses import demand was forecast to contract by two percent y/y in 2022 as bigger shipments to Far East Asia were expected to be outweighed by smaller deliveries elsewhere, including to the EU, Africa and the Americas. Trade in dry peas and chickpeas was seen contracting, contrasting with an expansion for lentils. The Secretariat updated members on its supply and demand forecasts, as well as fob price assessments for key origins. 

The Secretariat presented its updated global supply and demand balances for grains-based ethanol, aimed at enhancing IGC's understanding of biofuels markets and to aid forecasting of short term trends in industrial use of grains. This was followed by members' discussions on recent biofuels-related policy developments. 

Taking into consideration the current market situation, members discussed the latest trade-related policy developments. The Secretariat also presented its new database on national trade-related and other policy developments. To improve market transparency, the database applies the same framework that has been developed by international organisations, namely the WTO and UNCTAD. 

The Council agreed a new programme of work for 2022//23, noting that the Secretariat would continue to concentrate on its core economic activities in relation to grains market challenges. Projects for the forthcoming year would include: 

  • Exploring a baseline scenario for biofuels production for the next five years
  • Developing special webinars on sustainability and trade for specific sectors (grains, rice, oilseeds and pulses)
  • Extending its work on pulses market information, including the development of supply and demand balances for dry and broad beans, as well as providing a wider range of FOB price information
  • Developing analysis of world sunflowerseed supply and demand, as well as the monitoring of sunflower product markets

The Council appointed Dr Florence Kaibi, Minister Counsellor and Agriculture Attaché, Kenya Embassy to Belgium, Luxembourg & Mission to the EU, Brussels as Chairperson for 2022/23. Ms Cynthia Guven, Agricultural Counselor for the United Kingdom and the Republic of Ireland, Foreign Agricultural Service, United States Department of Agriculture was appointed Vice-Chairperson for 2022/23. 

The Council welcomed the participation of observers from Brazil, Taipei (Chinese) Separate Customs Territory, FAO-AMIS and the IGTC. 

The 31st IGC Grains Conference titled Building resilience to global market vulnerabilities will be held in person and virtually on 7-8th June 2022 and will comprise 13 live Q&A sessions. Amongst the eminent speakers, Victoria Prentis MP, Minister of State (Minister for Farming, Fisheries and Food) as well as Mr Kachka, Deputy Minister of Economic Development of Ukraine will participate in the discussion on Food security and trade. 

The IGC Grains Conference is part of the fourth London Grains Week organised by AHDB, GAFTA, IGC and IGTC to bring together the key operators of the grains value chain to discuss the latest trade challenges and opportunities.

For more information about the IGC Grains Conference visit the website, HERE.
 


The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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